"Returning Foreign Tourists" Galleria Department Store, Sales Up 500%

Luxury Hall, Sales Increased Over 500% in Last 6 Months
Ranked 2nd Nationwide in Foreign Customer Sales, 1st in Gangnam Area
Foreign Sales Share Recovered from 15→1% to Recent 5%

A foreign tourist is selecting a gift necktie at a luxury store in Galleria Department Store (Photo by Galleria).

Galleria Department Store announced on the 7th that foreign sales at its Seoul luxury store have increased by more than 500% over the same period last year for six months from August last year to last month.

Foreign sales at Galleria Luxury Store are the second highest among domestic department stores, following Lotte Department Store Main Branch. It is the number one department store in foreign sales in the Gangnam area. Before the spread of COVID-19, foreigners accounted for more than 15% of luxury store sales, but as travel demand decreased due to the prolonged pandemic, the proportion of foreign sales once fell below 1%. However, over the past six months, with the increase in foreign tourists due to the endemic (periodic outbreak of infectious diseases), the proportion of foreign sales has risen to over 5%.

The main nationalities of foreign customers are China, Southeast Asia, the United States, and Japan, in that order, with Chinese customers gradually increasing since the end of the second half of last year. Luxury goods overwhelmingly dominate the main shopping items for foreigners. Foreigners shopping at the luxury store tend to be individual tourists rather than group tourists, resulting in a higher purchase amount per person (average spending). Before COVID-19, the average spending per Chinese customer at the luxury store reached 3 million KRW. A high revisit rate is also one of the characteristics of foreign customers at the luxury store. Among total foreign sales, customers using the Galleria Global Membership Card account for more than 50% of sales.

The Galleria Luxury Store Foreign Marketing Team has launched full-scale marketing in line with the trend of increasing foreign customers due to the endemic. Representative foreign marketing efforts include welcome programs such as discount coupons and gifts for attracting new foreign customers, as well as partnership benefits linked with the Apgujeong commercial district. A Galleria official said, "We plan to actively attract foreign customers through the luxury store’s experience in foreign marketing, including Korea’s first foreign concierge service, foreign membership, and operation of a global VIP lounge."